Tag Archives: baby boomers

Remember when grandparents used to consider nursing homes some kind of punishment akin to abandonment? There’s a good chance that reference has seen the last of its days. The senior living industry is seeing a huge transformation from “hospital mentality” to “hospitality.” Or, as one expert put it, developers are putting the “living” in “senior living.”

With the addition of more than 40 million seniors 65+ over the next 35 years, America will need to doubling its number of caregivers. Since that population isn’t growing as quickly, there will be more need for assisted living facilities.

“At the present time, neither the training programs nor the pay scales are ready to attract the workforce that will be needed,” says Paul Schoeffler, senior pre-construction manager at Adolfson & Peterson Construction. The Weitz Company has worked in the senior care market since the 1960s. Based on its research, the senior living trend is leaning “overwhelming” toward stand-alone assisted living, says Brendan Morrow, Weitz’s director of senior living.

“It seems to be what everyone is building,” he says. “The current market size is about 50,000 units for all services. We project that to grow to 180,000 by 2030. Between now and 2030, the population of people 65 and older is projected to grow by 257 percent.”

There are 76.4 million Americans who were born between 1946 and 1964 — the affectionately named Baby Boomer generation. The oldest Boomers are about 68 years old, points out Morrow. This means they’re 13 years younger than the average occupant of a senior care facility, he says. Currently, about 12 percent of individuals who are age and income qualified for senior care facilities are residents. With the projected growth of population, demand will increase. However, Morrow says there’s still “some time before that explosion starts.”

“The facilities that are being built are nicer, more luxurious with many amenities and people are more willing to leave their homes,” he says.

This is the generation that followed those who were hardened by WWII. For Jan Wiggins, sales director at assisted living facility Vi at Grayhawk, this means a generation of arrested
development. “

They’re buying the lifestyle [of an assisted living facility],” says Wiggins. “They’re spoiled already. They’re not like the people who are 90 and live here and went through the wars. They were
more thrifty. They saved. The people coming in now like the idea that somebody is always going to be taking care of them.” This is what Wiggins says gives a place like Vi at Grayhawk a competitive edge in the market — its large care center. Residents who buy into the lifestyle also buy into the care plan, which guarantees that they never have to leave the property or be, “farmed out,” she says, to another care facility.

“I question that about the new developments,” she says. “A large care center makes all the difference in the world.”

Adolfson & Peterson Construction’s Schoeffler has worked on multiple assisted living facilities and says healthcare integration begins on “day one” when planning a new development.

“Today’s new facilities need to include not only a robust special system infrastructure, but the flexibility to upgrade the infrastructure as the facility ages,” he says.

The level of caregiver services required in each type of assisted living area — memory care, skilled nursing, hospice — and how many rooms and how much space is dedicated to each assisted living type are “critical for plan development.”

“Many older facilities still focus on the aging aspect of assisted living rather than the living aspect of assisted living,” he says. “Caregiver training will be needed to change these attitudes.”

A CHOICE LIFESTYLE

Though Wiggins has observed that generations are staying independent longer, the average age of residents in Vi at Grayhawk’s community is dropped. Since January 2013, 72 homes have sold.
Many new residents are couples in their 70s, she says. However, she has seen some people as young as 59 join the community.

“Now it’s a choice, not an obligation,” she says.

Choices is the operative word, according to Schoeffler.

“Baby Boomer expectations are almost unlimited and always have been. I know because I am one,” says Schoeffler. “No sitting around for us after retirement. Many of us look to reinvent ourselves on a regular basis. We expect any place we live to offer all the services we have had for years — internet, TV, activities, fitness centers, yoga classes, dining options, outing options and choices — lots of choices.”

About one million Americans live among an estimated 30,000 senior care facilities, reports the Small Business Development Center Network. Assisted living facility industries are part of a $259B industry, according to data reported by healthcare research firm Kalorama
Information. Vi at Grayhawk, for instance, accepts outpatients and private pay patients from Mayo Clinic and Scottsdale Healthcare facilities to offset its fees.

The number of seniors are expected to double by 2030, but the caregiving generation
is not growing as quickly.The need is increasing, many elderly may be postponing
retirement due to housing market slumps.

Baby Boomers represent more than 70 percent of the country’s financial assets and more than half of discretionary spending, according to the SBDC.

BABY (BOOMER) STEPS

Healthcare real estate has been progressively moving toward a more campus-like environment. However, as Wiggins mentioned earlier, senior care facilities that can curb the need to outsource its patients have an advantage for securing residents.

Morrow cites Denver, Texas cities and others in the Midwest as hot spots for senior
living.

Arizona ranks in the top 10 states for rental assisted living, rental memory care, rental independent living and entry level fee CCRC. Another thing it has going for it is outdated facilities.

“A good sign for Arizona is we have a lot of aging facilities and a lot of investors looking to get their hands on those. Many of these facilities built in the ‘70s and ‘80s are now ready for a facelift,” he says, adding the weather and golf courses accessibility don’t hurt the state’s draw.

What can also draw more attention is technology — be it TeleMedicine suites, preventive monitoring systems or offering more memory care options.

“On the memory care side of things, there is a real need for facilities that can handle Alzheimer’s patients,” says Morrow. “As a country, the main focus has been on eliminating other diseases and less on the Alzheimer’s and dementia. As people live longer their likelihood of showing signs of these ailments increases substantially.”

The most notable trend, Morrow says, is “the change from a hospital mentality to a hospitality
mentality.”

“We have three product lines colliding: healthcare, housing and hospitality,” he says. “Some of the facilities are over-the-top nice, but the facility doesn’t have to do all the work. The concierge
service, room service, wellness coaches and things of that nature are taking senior care service to a new level. In the right facility, you can really get pampered physically and mentally. It’s not your old nursing home picture in your mind, that is for sure.”

According to AARP, for the next 18 years, Baby Boomers will be turning 65 at a rate of about 8,000 a day. That’s a lot of homeowners who may be thinking about unloading their large family homes.

“It is often misleading to generalize for a whole generation,” said Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business at Arizona State University. But Orr said some Baby Boomer trends that will impact the residential real estate industry are:

· Financing retirement by selling up and moving to a less expensive location.
· Downsizing from large family-oriented trophy homes to smaller low-maintenance homes.
· Continuing to work at least part time, often from home, so looking for high-speed Internet service.
· Looking for diverse cultural, educational and recreational opportunities and good restaurants.

Valley real estate leaders are prepared for the impact.

“Throughout the next decade, we will witness large numbers of Baby Boomers downsizing,” said Mike D’Elena, a Realtor at HomeSmart Elite Group. “The first wave of Boomers turned 65 in 2011. However, most who wanted to sell had negative equity and couldn’t. Since then, the Phoenix market has bounced back significantly so the wave is coming.”

Hoping to ride that wave, Valley-based Robson Resort Communities has developed a “lock and leave” product, allowing Boomers to downsize, while still enjoying the amenities they crave, such as golf, tennis, swimming and social clubs and events.

“With the Boomer demographic, builders must consider what amenities they will offer, now more than ever,” said Steve Soriano, CFO of Robson Communities. “Buyers are looking for added value to maintain an active and social lifestyle.”

One of the fastest-growing trends, the lock and leave concept allows residents to walk away and know their home is safe within a gated community and the grounds will be maintained while they’re gone.

“The lock and leave product appeals to Baby Boomers that seek a seasonal home without a lot of upkeep,” Soriano said. “The single-story, attached townhomes in the Villa Home Series showcase an open floor plan with landscaping and exterior maintenance covered by the Villas’ homeowner association. These homes give our resident more time to enjoy the weather, luxuries and the numerous activities that they come to enjoy in Arizona.”

Every 67 seconds, someone is diagnosed with Alzheimer’s disease. It is no longer considered another ailment of getting older, but rather an epidemic because of the staggering increase in Alzheimer’s diagnoses, particularly among women. Statistics show that one in eight women will be diagnosed with the disease. With Baby Boomers aging, this number is estimated to rise to one in six women, compared with one in 11 men who will be affected by the disease. Alzheimer’s robs loved ones of their memories and eventually the capacity to function. It is just as detrimental to the individual with Alzheimer’s as to the family members who are left to take care of them.

The epidemic could be just as deadly to the healthcare system. If nothing is done before the impending influx of women who will be diagnosed with the disease in the upcoming years, “We risk bankrupting our current healthcare system,” said Jessica Langbaum, principal scientist at Banner Alzheimer’s Institute in Phoenix. “If we do nothing and maintain the status quo, we will not be able to handle the surge of patients with Alzheimer’s because we are not equipped for it now.”

Medical experts fear that the current healthcare system will cripple under the stress caring for the increasing number of people who will be diagnosed with Alzheimer’s. Already, the statistics show that women in their 60s are twice as likely to develop Alzheimer’s than they are to develop breast cancer.

PAYING THE BILL
There are 78 million Baby Boomers in the U.S. Each day, about 10,000 of them turn 65, which is the at-risk age for being diagnosed with Alzheimer’s. The majority of them are women.
“We are already starting to see an increase in women with Alzheimer’s,” said Lori Whitesell, owner of SYNERGY Home Care.

This can only complicate the expenses and funds being paid by Medicare and Medicaid, which are already expected to be responsible for a $150 billion bill this year to treat patients with Alzheimer’s and other forms of dementia. The national cost of caring for people with Alzheimer’s and other types of dementia is projected to reach $214 billion within the next two years. As of right now, each family can expect to pay about $56,800 a year for a family member with Alzheimer’s, making it the most expensive disease in the country.

In 2011, President Barack Obama recognized the growing concern and signed into law the National Alzheimer’s Project Act (NAPA). This project is designed to create and maintain an integrated national plan to find a cure for Alzheimer’s. The plan is to coordinate research and services across all of the federal agencies that are focusing their energy on the disease, as well as accelerate the development of treatments that would prevent, cure or slow the progression of Alzheimer’s.

“It’s a race to figure out what to do,” said Bob Roth, managing partner of Cypress HomeCare Solutions, “and, thankfully, everyone is working together.”
NAPA hopes to increase early detection and wants to be able to prevent and effectively treat the disease by 2025.

ARIZONA HIT HARD
Despite the government’s efforts, it is only a matter of time before the epidemic of Alzheimer’s hits America. Out of the 5 million people who currently suffer from Alzheimer’s, 3.2 million are women. In Arizona alone, 11 percent of the seniors have Alzheimer’s. It is the fifth-leading cause of death in the state and it is estimated that in 2014 there will be a total of 120,000 seniors with Alzheimer’s in Arizona. It has been found that more senior citizens die from Alzheimer’s than prostate and breast cancer combined. Alzheimer’s disease is the only cause of death among the Top 10 in the United States that cannot be prevented, cured or even slowed.

To compound the problem, there are currently not enough care facilities, hospitals or caregivers in the U.S. to help take care of the Baby Boomer generation, which is expected to raise the number of people with Alzheimer’s to 16 million people by 2025.

“The statistics that we have now are probably an underestimation because of the people that are trying to hide the fact that they have the disease,” said Roth, who is also on the board for the Banner Alzheimer’s Foundation.

Roth said many senior citizens are either afraid of what will happen to them or they ignore the symptoms of the disease. Studies have shown that women tend to live longer than men and will be widowed or separated from their families for the last 10 to15 years of their lives, which severely limits the number of people who can help support them.

HARD TO UNDERSTAND
Not only is it hard to know what will happen in the near future with our healthcare system, but the disease itself is still very misunderstood. It is known that Alzheimer’s is a progressive disease. In the beginning stages, the memory loss is mild; however, as the illness advances to the later stages, the patient loses the ability to carry on a conversation as well as the loss of motor functions.

Scientists have yet to find the real cause of this disease, but they believe that it starts in the brain cells, also known as neurons. The brain has more than 100 billion neurons that connect with each other to form a communication network. Researchers think that Alzheimer’s is created by an amyloid plaque buildup between the neurons, which prevents the brain cells from working properly. This causes a breakdown of the brain’s communication system and the cells lose the ability to do their job. The cells eventually die and cause irreversible damage to the brain. As the neurons die, the entire brain shrinks from tissue loss. Due to the amount of brain damage, the average person with Alzheimer’s lives about eight years.

Currently, there are 10 million women in the U.S. who have Alzheimer’s or are caring for someone with the disease. Most caregivers are unpaid and work without any support. They usually have to give up their jobs because taking care of someone with Alzheimer’s is a 24-hour-a-day job. There are two and a half times as many women providing intensive care for Alzheimer’s patients than men. Women who take on the role of full-time caregiver are strongly encouraged to use respite care so that they can get the breaks needed to be able to take care of themselves.

LOOKING FOR ANSWERS
Banner Alzheimer’s Institute is the largest Alzheimer’s research facility in the country. It is recognized as a world leader in brain imaging research. It uses advanced brain imaging techniques that help researchers detect and track any brain changes associated with Alzheimer’s before memory loss and thinking issues arise. On Feb. 7, 2012, the Obama administration announced a historic investment of $156 million to Alzheimer’s research.

“We’re so grateful for the funds that Obama gave us, but we need more,” Langbaum said. ““It’s wonderful that the government has made (Alzheimer’s research) a priority, but a lot needs to happen before we can find a cure or a treatment by the deadline they have set in 2025. Right now, we don’t have the funds to do that.”

DMB Associates announced today the four builders that will construct homes at Victory, Arizona’s first multi-builder community for people 55 years and better which will be located in the multi-generational community of Verrado.

Only four homebuilders were selected among the interested top local and national homebuilders. The Phase One roster includes Lennar (NYSE: LEN), Maracay Homes (NYSE: WY), Standard Pacific (NYSE: SPE) and T.W. Lewis by David Weekley Homes. The combined purchase by the homebuilders totals $40.68 million.

Similar to DMB’s process of collaborating with lifestyle, health and longevity experts on the design of the community, DMB engaged an expert architect, universal design experts, and kitchen and bath designers to educate homebuilders on how the lifestyle, needs and motivations of Baby Boomers differ from traditional homebuyers.

As a result of the collaboration, these homebuilders will be offering innovative, easy living home designs with an emphasis on entertaining, personal retreats, dream kitchens including the latest appliances and technology, open floor plans, and casual living that creates connections between the indoor and outdoor living spaces.

“By collaborating with multiple builders, Victory at Verrado plans to offer its residents more choice, quality and personalization than other communities constructed by a single homebuilder. Multiple homebuilders, coupled with Verrado’s unique architectural guidelines and front porch emphasis, will create diverse and traditional looking neighborhoods,” said Nick Taratsas, DMB senior vice president and general manager of Victory. “No other developer has spent this kind of time and attention to educate builders on the specific needs of Baby Boomers.”

The first phase of homes will range from approximately 1,400 square feet to more than 3,000 square feet, available on four distinct lot sizes. Home prices are planned to range from the $200,000’s to more than $500,000. DMB, which has a growing list of interested buyers, plans to start sales in January 2015.

The residents of Victory will enjoy all of the existing amenities the small town of Verrado offers today. In addition, the Victory Club, which will be located at the center of the Victory District, will be the hub of the indoor and outdoor amenities designed and built exclusively for Victory residents. The Victory Club is planned to open in December 2015. Tom Lehman is designing Victory’s 18-hole golf course and clubhouse which is planned to open late 2016. An extensive path and trail system connecting the new Victory district and adjacent White Tank Mountain range and Verrado is being planned as well.

DMB broke ground on Victory at Verrado in October 2013. The district will have 3,500 homes at build out.

They are the healthcare providers that will see 22 percent job growth – more than any other occupation – through 2018. They are the communicators. They bridge the gap in the medical industry. They are the part of the healthcare team that makes sure that the right patient is in the right place getting the right thing done.

They are nurses and they are now taking on more specialized roles, applying advanced technologies and filling voids created by an anticipated shortage of primary care physicians.

“We are encouraging our nurses to return to school to advance their degree,” said Deborah Martin, senior director of professional practice at Banner Health. “Patients are much more complex in our hospitals, as well as in the home and our communities … Nurses need to have higher levels of education to manage these complexities in all settings where nurses practice. Advanced degrees are now required for our upper level nursing managers.”

About 10,000 Baby Boomers reach retirement age every day, fueling the long-term demand for specialized nurses. To help fill that need, Arizona State University implemented the Adult-Gerontology Nurse Practitioner Doctor of Nursing Practice (DNP) concentration.

“It will prepare nurse practitioners to deliver primary care to adults throughout their lifespan with increased emphasis on care of the aging population,” says Katherine Kenny, clinical associate professor and director of the DNP program at ASU.

Johnson & Johnson’s website lists more than 3,000 capacities in which nurses can be employed — from school nurses to jailhouse nurses. Nurses practice in hospitals, schools, homes, retail health clinics, long-term care facilities, battlefields, and community and public health centers. Everywhere there are people, there are patients, and everywhere there are patients, there are nurses.

“Nurses are becoming more influential in the policy changes that are occurring with the Affordable Care Act,” Kenny says. “More nurses are practicing in ambulatory care settings and public and community health.”

Arizona educational institutions are now offering a wide range of educational opportunities which support the nursing profession’s challenge to improve patient care outcomes for individuals, systems, and organizations. And because of skyrocketing healthcare costs, preventative care and education have become integral elements in reducing chronic illness and minimizing re-hospitalization.

“Nurses are now specializing in everything from palliative care and managing chronic illness, to maintenance and preventative care,” says Ann McNamara, dean of Grand Canyon University’s College of Nursing. McNamara says students at GCU are spending more time concentrating on home healthcare and hospice in their new hands-on simulation labs, complete with live actors, computer-operated mannequins, and dynamic patient scenarios.

Angel MedFlight provides air medical transportation services from bedside to bedside. The company’s CEO, Jeremy Freer, says “[Our] nurses are able to put all the components of the puzzle together and make the medical flight process more efficient, effective and compassionate.”

Nurses are also assessing the long-range healthcare needs of patients.

“Where once the hospital nurse’s prime responsibility was to provide the best care possible that the patient needed at that moment, now the nurse is also focused on what happens next,” explains Maggi Griffin, vice president of patient care services at John C. Lincoln Health Network.

Griffin says that patient discharge planning and post-hospitalization follow up are other key roles of the evolving nursing profession.

Advancements in technology have significantly enhanced patient care in recent years. Nurses now have the ability to monitor patient conditions remotely, and electronic health records enable nurses to track, evaluate, and document patient information.

“Technology is opening doors to deliver nursing care in new and innovative ways, often serving as a second set of eyes to enhance patient safety or monitoring patients from their homes,” says Deborah Martin, senior director of professional practice at Banner Health. Martin adds that Medication Bar Coding is another example of how technology is helping nurses be more effective and prevent errors.

Due to the skyrocketing cost of healthcare in general, nurses are becoming more involved in a patient’s primary care.

“As advanced practice providers of healthcare, nurses with master’s and doctoral degrees are able to deliver high quality care to patients in their own individual practice,” Martin says, “as well as work side by side with physicians to provide care in a more cost effective manner.”

“As the major component of hospital rosters, nurses’ salaries account for a significant part of any hospital budget,” Griffin adds. “With financial stresses coming from the economy, from government healthcare program budget cuts and from other areas, nursing is much more tightly controlled.”

A decade ago, nursing shifts were scheduled regardless of room occupancy. Currently, industry experts say those staffing schedules fluctuate based on patient population in each unit.

The other major shift is in the demand for specialized nurses. Julie Ward, chief nursing officer at St. Joseph’s Hospital and Medical Center, says specialties have nurses working in both the inpatient and outpatient settings.

“We are also exploring roles for nurses to shepherd groups of patients through the maze of care,” Ward says. St. Joseph’s nurses make follow-up phone calls to patients to ensure the patient is safe and able to follow their discharge instructions, Ward says.

Still, the primary evolution of the nursing industry has been in higher education. Gone are the days when nurses were simply bedside attendants. Now, they are replacing the expensive medical doctors and are running their own practices as Family Nurse Practitioners (FNPs) and in other upper level specialties. Most hospitals are encouraging their nurses to return to school to improve their knowledge base and advance their degrees.

The Robert Wood Johnson Foundation (RWJF) and the Institute of Medicine of the National Academies (IOM) launched a two-year initiative to respond to the need to assess and transform the nursing profession. The IOM appointed a Committee on the RWJF Initiative on the Future of Nursing for the purpose of producing an action-oriented blueprint for the future of nursing. Through its deliberations, the committee developed four key messages:

* Nurses should practice to the full extent of their education and training.

* Nurses should achieve higher levels of education and training through an improved education system that promotes seamless academic progression.

* Nurses should be full partners, with physicians and other health care professionals, in redesigning health care in the United States.

“We are encouraging our nurses to return to school to advance their degree,” Martin says. “Patients are much more complex in our hospitals, as well as in the home and our communities. As noted by the IOM, nurses need to have higher levels of education to manage these complexities in all settings where nurses practice. Advanced degrees are now required for our upper level nursing managers.”

Experience Matters, an organization that connects baby boomers with nonprofit and social service organizations to improve the quality of life in Maricopa County, announces the graduation of the inaugural encore fellowship class. The first class of encore fellows has completed their yearlong fellowship with their host nonprofit organizations. Encore fellowships represent a new life-stage in which experienced boomers find meaningful ways to engage in the community and bring skilled and professional resources to these organizations that are often under-resourced. Nationwide, 31 million boomers indicate an interest in encore opportunities. In Maricopa County there is significant demand on behalf of both boomers and nonprofit organizations for fellowship and hosting opportunities, respectively.

“My work this past year as an Experience Matters’ encore fellow hosted by the Alliance of Arizona Nonprofits could not have been more rewarding. I learned more about the needs of nonprofit organizations and how they operate than I thought possible in just one year. It was quite rewarding to see how my 25 years of experience in the corporate world added value to a nonprofit organization. I have a new-found respect for the Arizona nonprofit community and am committed to staying involved as I graduate from the Encore Fellowship Program,” stated Warren Mills, former valley technology executive.

“It is with great pride that we celebrate the graduation of our inaugural encore fellowship class at Experience Matters. These fellows and organizations proved the value of matching boomers with nonprofit organizations. What we have learned from the inaugural class indicates we can significantly increase the number of boomers engaged in paid and unpaid social service opportunities to support our nonprofit community as they work so hard to improve the quality of life in Maricopa County. The demand is strong to connect the talent with the community, ” stated Nora Hannah, CEO of Experience Matters.

The inaugural class included the following fellows and their host organizations:

Experience Matters, an organization that connects baby boomers with nonprofit and social service organizations to improve the quality of life in Maricopa County, has received a $1.6 million grant over four years from Virginia G. Piper Charitable Trust. The grant allows Experience Matters to expand its infrastructure to offer more paid and unpaid opportunities to more boomers seeking work in the social sector. Often referred to as encore careers, this represents a new life-stage in which experienced boomers find meaningful ways to engage in the community. Nationwide, 31 million boomers indicate an interest in encore opportunities.

Engaging boomers as the talent to solve community problems is the driving force of the Experience Matters’ vision and mission, and it is changing the quality of life for boomers such as Encore Fellow Anne White. “I feel my work as an Encore Fellow brought more rewards to me than I gave to the Balsz CommunityEducation Foundation, my host organization,” stated White. “Helping them build the infrastructure and fundraising programs for their foundation was incredibly rewarding, and I am thrilled to stay on as a volunteer with the organization beyond my Encore Fellowship,” she added.

Experience Matters aims to expand operations and deliver $34 million in human capital to Maricopa County organizations over the next five years. The organization’s strategic plan to connect boomers with service organizations was crafted by a group of highly experienced strategists, business owners, technologists, marketing experts and nonprofit executives and community leaders over a six-month period.

“This generous grant from Virginia G. Piper Charitable Trust is vital to the successful expansion of Experience Matters. We can significantly increase the number of boomers engaged in paid and unpaid social service opportunities to support our nonprofit community as they work so hard to improve the quality of life in Maricopa County. Both boomers and nonprofit organizations are signing up rapidly to engage. The demand is strong to connect the talent with the community, ” stated Nora Hannah, CEO of Experience Matters.

“Experience Matters produces a high rate of return on investment because there is nothing more valuable than giving a nonprofit talent and skill,” noted Patrick McWhortor, President and CEO of Alliance of Arizona Nonprofits. “As Experience Matters helps nonprofits engage experienced and talented boomers in their organizations, the capacity and effectiveness of the organizations has the potential to expand exponentially,” he added.

To recognize and build on the achievements of nonprofit and public sector organizations that engage the talent of people over 50 in “Encore” roles—Virginia G. Piper Charitable Trust is launching the Piper Trust Encore Prize. “Mature adults that either want to retire or retool, have something of great value—experience—and as such, organizations are learning to tap their expertise in new ways”

The Encore concept—engaging people over 50 in roles that combine personal meaning with social impact—has been gaining popularity across the country, and particularly in Phoenix, as nearly 10,000 people each day turn 60 in the United States.

Piper Trust will award up to three $5,000 prizes to organizations; one of the three winning organizations may receive a $50,000 “Encore Enhancement Prize” in addition, to expand the organization’s use of Encore talent. The Piper Trust Encore Prize is anticipated to be awarded every other year.

“Since its inception, Piper Trust has strategically invested in programs and innovations that support older adults. The Piper Trust Encore Prize is a way for us to not only recognize our local organizations for the work they are doing to engage older adults in meaningful work—but to advance the growth and understanding of Encore roles and the tremendous impact they can have on individuals, organizations, communities, and society at large,” said Judy Jolley Mohraz, president and CEO, Virginia G. Piper Charitable Trust.

“The first of 78 million baby boomers have begun to hit the traditional retirement age but many aren’t retiring in traditional ways—or for that matter at all,” said Marc Freedman, founder and CEO, Civic Ventures—a San Francisco-based nonprofit think tank focused on boomers, work, and social purpose. “Instead, tens of millions want to contribute in meaningful ways to their communities, using the skills and talents they have acquired over a lifetime.”

Nonprofit and public sector organizations within Maricopa County can apply (or be nominated by others) for the Encore Prize. The Encore Prize targets organizations that engage experienced older adults (age 50+) in making significant contributions to the organization’s work in paid and/or unpaid roles. Preference will be given to organizations that provide some form of compensation. Compensation is broadly viewed and can include health insurance, stipends, salary, living allowance, expense reimbursement (e.g., mileage, meals), office space, computer use, Wi-Fi, cell phones, administrative support or other creative benefits.

“Mature adults that either want to retire or retool, have something of great value—experience—and as such, organizations are learning to tap their expertise in new ways,” said Nora Hannah, CEO, Experience Matters and former business executive. Experience Matters is a Phoenix nonprofit focused on connecting talent with community needs. ”The benefits are threefold: the organization gets invaluable talent, the individual gets personal satisfaction from doing work that makes a difference, and ultimately the community advances closer to its goals of a better life for all its citizens.”

There are 1.1 million people in Maricopa County who are age 50 or older.

“We commend Piper Trust for taking this important step toward building a community that values all its citizens and invests in what older adults can give back,” added Freedman.

To apply or nominate an organization for a Piper Trust Encore Prize or for more information, visit: www.pipertrust.org/encore. Applications are due June 29, 2012 through the online portal. Prize awardees will be selected by mid-September 2012.

There is a good chance that when grandma or grandpa came for holiday dinner, they didn’t have far to travel: likely from the next room.

An aging population — the Alliance for Aging Research says 10,000 baby boomers in the U.S. turn 65 every day — and a still-struggling economy have helped the extended family make a huge comeback. It’s also created a new label: the “sandwich generation,” which describes more than 16 million Americans who care for children and their parents in their home.

A Pew Research Center’s study shows that 16 percent of households have two adult generations living under one roof, a 33 percent increase from a decade ago. From 2009 to 2010 alone, there was an increase of more than 500,000 multigenerational residences.

“With pensions failing and retirees experiencing shortfalls in savings, it’s going to become even more popular,” says John L. Graham, co-author of “Together Again: A Creative Guide to Successful Multigenerational Living.” But believe it or not, aging parents are not the age group most responsible for the trend. That distinction belongs to young adults — especially those ages 25 to 34. In 1980, just 11 percent of adults in this age group lived in a multi-generational household. By 2008, 20 percent did, and the economy appears to have played a significant role. A Pew survey found that among 22- to 29-year-olds, one in eight say that, because of the recession, they have boomeranged back to live with their parents after being on their own.

While the increase in the number of multigenerational homes has presented financial challenges for some of those that find themselves with multiple generations living under one roof, it has presented financial opportunities for contractors who are adding additions or remodeling existing homes, and for realtors and home builders who see a new market opening.

“The demographics are changing, the economics are changing” says Alan Jones, Lennar’s Arizona division president. “More Americans are doubling up and it’s a trend that needs to be addressed.” Lennar addressed the trend by introducing its NextGen home, which the company markets as a “home within a home.”

“Lennar is the first home builder in the nation to address this demographic shift in our country,” says Jon Jaffe, Lennar’s chief operating officer. “Having multiple generations living under one roof is deeply rooted and desired by several cultural backgrounds in the United States. Plus, the aging of America is creating a need to care for parents, and for most people the most economical way to do that is at home. This home within a home design offers privacy for everyone.”

Lennar’s NextGen home has a specific floorplan incorporated into the main house that includes a separate first-floor living space with its own entrance, living area, kitchenette, attached garage, patio and barbecue area. There is a door that accesses the main living area. “Everyone living in the house can then share space as they see as appropriate,” Jones says. “We are actually building a home for the way that people are already living.”

The baby boomers generation, comprised of about 90 million people, are beginning to head in retirement, but where are they headed?

In this week’s edition of the AZ Business Magazine’s podcasts, we’ll take a look at not only where the baby boomers will take up residence, but also how this transition into retirement looks, as well as the economical impact it can have in Arizona.

Starting back on January 1, 2011, 10,000 baby boomers will reach the age 65 every day for the next 19 years.

But the baby boomer generation is beginning to redefine how the public sees traditional retirement. According to a survey from the AARP, about 40 percent of baby boomers plan to continue to work until they drop.

It is evident that this new approach to retirement is filled with a generation of citizens looking to live an active lifestyle, and retirement communities filled with amenities can provide exactly what baby boomers are looking for.

With Arizona’s ideal weather and land to build on, new communities will being to take advantage of this new, in-demand market.

But how does this help our economy?

Baby boomers will begin to move to the Valley to call it home for retirement, and while doing so, they will begin to spend money, putting more into our economy; more people equals more demand for businesses and goods.

But what happens when the baby boomer community is gone? Will we still need these communities that were built to meet their needs? Or will businesses and communities have to close up shop once the demand is done?

This week, I spoke with Deborah Blake, vice president of marketing for Robson Resort Communities, about why the baby boomers are so interested in these active, adult living lifestyle communities and what we can expect to see here in Arizona as a result of that.

Healthcare Reform – Healthy Choice?

Healthcare reform has been a national hot button lately, and with it comes a focus on all related industries, such as healthcare design and construction. With the development of proposed plans, comes the scrutiny of every penny allocated, prompting a public perception that the cost of healthcare facilities drives up the cost of healthcare. Because of this opinion, many healthcare operators are feeling pressure to decrease spending on their facilities to prevent a collective outcry.

Despite the myriad subjective view points on this issue, several facts substantiate that healthcare construction should not cease.

Injecting Capital Into Growth

History has proved that government-provided medicine hinders the development of new healthcare facilities and does nothing to foster innovation or improvement. There have been many newsworthy examples of limited investment in facilities maintenance programs and improvements, resulting in run-down, non-viable centers, which minimize effectiveness of healthcare delivery.

Capital expenditures (facilities and equipment) typically comprise 10% to 15% of a healthcare organization’s budget, while staff costs can total 60% or more. Spending on projects should not be limited, but instead examined to elicit greater efficiencies through planning and design.

Booming Healthcare

The Phoenix and Tucson metropolitan areas have invested in healthcare facilities, but rural areas still lack capacity. The Hill-Burton Act of 1946, implemented “to modernize hospitals that had become obsolete due to lack of capital investment,” caused a surge of rural hospitals to be built in the 1950s and ’60s. Many of these hospitals still exist in almost the same condition today as when they were first built — unable to support current clinical demands and technological needs.

According to a U.S. News and World Report article published earlier in 2009, Phoenix ranks No. 11 on the top 20 list of cities where baby boomers are likely to retire, based on the expected senior population growth. The oldest boomers will begin to retire in 2011, and the Valley is not ready to receive them.

Arizona is short 1.5 beds per 1,000 residents, based on the national average. Because the demand on our statewide facilities will increase, not investing in additional healthcare facilities now will yield a greater shortage in the future. Seventy-six million baby boomers are anticipated to have multiple chronic conditions due to longer life spans (90+ years is the fastest-growing demographic) and will require more in-patient and primary care.

Baby boomers don’t plan to live in traditional nursing homes, as they prefer a community-centered lifestyle. The “old school” model of long-term care won’t suffice, requiring innovative facilities to accommodate the increasing numbers in a supportive manner.

To compound the demographic dilemma, earlier this year the under-20 population, or Gen Y, surpassed the number of baby boomers. This cohort now comprises roughly 28% of the U.S. population and is fast becoming equally as influential as the boomers, but with new expectations. Because this generation is just now beginning to enter its child-bearing years, more women and children’s services will be in demand at the same time boomers’ healthcare needs peak.

Reviving Investment Through Operations

As the healthcare reform debate rages, investment in design and construction of healthcare facilities must continue. Implementing effective planning and design strategies can actually help to reduce operational costs, such as staffing, because of improved efficiencies. Investing in facility updates also emphasizes a focus on better patient care through the creation of quality, healthy environments that take advantage of current technologies and meet best-practice expectations at a minimum.

To help spawn the future success of healthcare in Arizona, it is necessary for design and construction to continue at the high caliber of success it has achieved — and lead the way to providing innovative healthcare programs and facilities for the nation’s aging and future generations.

Companies get ready as boomers start leaving the work force

The catchy term many are using to describe the impending exodus of baby boomers from the work force sounds like the title of a science-fiction film: “The Brain Drain.”

But there’s nothing fictional about it. The oldest baby boomers, a group that includes more than 78 million Americans born between 1946 and 1964, began qualifying for early Social Security benefits this year. Some may choose to work beyond the traditional retirement age and others could stay on for financial reasons, but the eventual departure of baby boomers will have a serious impact on corporate America. This might be a particular concern in upper-management ranks, where positions are most likely manned by older, more experienced personnel and a talent pool of capable replacements is thin.

“The issue is simply that our population is getting older and the birth rates aren’t equal to the aging of the population,” says Angelo Kinicki, an Arizona State University management professor, author and consultant. “You’re going to have more people exiting than you will have entering (the work force).”

Despite this demographic shift, recent surveys from Ernst & Young and Monster Worldwide agree that few corporations are properly prepared for the challenges ahead.

“What’s going to happen here is as baby boomers retire, you’re going to have a lot of people who have knowledge that are leaving the work force,” Kinicki adds.

Kinicki says it’s vital to create systems for transferring knowledge from seasoned employees and senior executives down to lower levels through the organization.
“I’d say the more progressive companies are engaging in what we call knowledge-management programs,” Kinicki says.

But, according to a 2007 Monster study titled “Building and Securing an Organizational Brain Trust in an Age of Brain Drain,” few companies have taken such steps.

While trying to determine the level of awareness companies have of the coming brain drain and what they’re doing to prepare for it, Monster found that only 20 percent of firms had a formal strategy in place to manage and preserve organizational knowledge.

Monster concludes that “the absence of such planning leaves a valuable asset exposed to a competitive market. Firms must not only recognize the value of knowledge but actively manage and protect it.”

Kinicki says several companies in Arizona, such as Intel, APS and Honeywell, have taken a proactive approach.

One corporation that has been especially innovative is Avnet Inc., a Phoenix-based Fortune 500 company that is one of the world’s largest distributors of electronic components, computer products and technology services.

Lynn Monkelien, vice president of learning and development, says Avnet is very cognizant of the imminent retirement of baby boomers.

“(We) have started looking at all kinds of ways that we can start to manage this transition period,” she says.

Among those is a multiple-tiered program that uses top-level management to teach classes for those viewed as future leaders.

Consider the Global Organizational Leadership Development, or GOLD, program. It does more than just cover particular subjects. Managers are able to expose students to their own experiences, while studentsget a chance to build relationships with senior leaders, paving the way for future coaching and mentoring.

“I think the real benefit is going to come as we start to replace some of the oldguard with the new guard,” Monkelien says.

The company also places great importance on succession planning, according to Linda Biddle, Avnet’s vice president for talent development. Avnet’s goal is to create a steady flow of people at all levels of the organization ready to take on new roles.

“Avnet is always thinking ahead, trying to predict what things are going to impact our business from a technology standpoint, from a process standpoint and, also, from a people standpoint,” Biddle says. “What we’re trying to do is not be reactionary — we’re trying to be proactive.”